The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Billionaire Paul Singer’s Elliott Management Corp. has bought a stake in Wipro Ltd., its first ever purchase of an Indian-based software outsourcer.
The New York hedge fund acquired 1.855 million American depositary receipts, or about 0.04 percent of Wipro’s share capital, according to a filing with the US Securities & Exchange Commission. Though tiny when compared with Elliott’s stake of more than 4 percent in rival Cognizant Technology Solutions Corp., which has the bulk of its operations in India, the holding in Wipro gives the fund another foothold in the nation’s $167-billion IT services industry at a time its main players are re-tooling to shore up margins amid tighter client budgets.
Elliott is known for shaking up companies. At Cognizant, it pushed for a board re-shuffle and a $3.4 billion return of capital to shareholders, setting off a wave of dividend and share buyback announcements among its IT peers.
Billionaire founder Azim Premji owns over 73 percent of Bangalore-based Wipro. The company declined to comment on the purchase by Elliott.